BoldVoice · B2C · accent coaching app
When users close the paywall, show a discount trial they can't close
Trial starts rose, but refunds rose by more; net loss
What they did
What happened
- Stage
- growth
- Effort
- A/B test run long enough for refund data to mature
In their words
Why BoldVoice Charged From Day 1 and Ignored the Duolingo Freemium Playbook — Anada Lakra
Anada Lakra… to implement soon after we started to really iterate on the paywall is that's not what actually matters. You have to actually look at the metrics of actual subscription conversion. Again, that's a pretty well-known thing. I don't think that's new, but the more important thing there is that some of those subscriptions, even though initially they convert, the payment doesn't actually go through and a lot of the refund rate can be a huge delta.
Anada LakraSo what I found is that anything that kind of forces or tricks people into starting a trial, you'll pay it when it comes to refunds. And that is a worse experience because those people who ask for refunds are generally pissed. They're not happy that they have to go through that process. You're also creating this negative user sentiment around the product that you don't want. And then of course, the matured cohort piece is important because people won't ask for the refund necessarily on day one. They'll ask for the refund after they've actually seen that the payment hit their bank account.
Anada LakraSo you have to think about, "Okay, trials start on this date, give it an extra week for them to convert, give it at least two extra weeks for the dust to settle from refunds." Again, it's very tempting to make a quick decision on trials, but you have to give it more time to see the entire story play out.
Anada Lakra… to be able to action it. And the idea of just sitting there on something that could be really promising for an extra month, depending on X number of months, depending on how much ... Again, users you need to validate and get to statistical significance. That part is hard of just sitting on that and being patient. And it also means you can't iterate as fast, you can implement those learnings as fast. So I get it and I was that impatient person.
Anada LakraI'll give you two examples actually. When it comes to the paywall, we tested a hard paywall, where we basically removed the X dismiss button. So people had to start a trial in order to proceed. And then we also tested a version, where there was still a dismiss button on the main paywall, but then if you dismissed it, we gave people an offer of X percent off that they could not X out of. So they would have to start a trial. If they hadn't started at the baseline price, they would have to start it at the lower price. Again, it's a trial, it's not a payment, so they still can't cancel it.
Anada LakraBut both of those look so promising on the trial numbers and it makes sense. People have already put in all that time in the onboarding flow. They actually want to see what this app is all about. And we're like, "Great. This is great. Why are we sitting on this? Why shouldn't just we put this in front of everyone?" And the answer came down to the refunds and the refunds spiked by way more than the gain in STAR trials. And again, it took us a …
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More from this episode
- Charge $10 a month with a 7-day free trial from launch dayFounder says it filtered out non-buyers and freed time for the product; no numbers
- Judge paywall tests on revenue after refunds, waiting 3+ weeks past trial startCaught two trial-start 'wins' that lost money once refunds came in
- Remove the close button so users must start a trial to continueTrial starts rose, but refunds rose by more; net loss
- Let people who close the paywall use day one free, then ask for a trialFounder calls it a good middle ground; no numbers
- Show the ~$150 annual plan first so ad spend pays back when trials endCash lands 7 days after install, so each channel's ROI is known at once; no numbers
- Market to international college students firstWeak fit: lower willingness to pay and less urgency; moved to professionals
- Sell to working professionals with good English, and skip beginners entirelyFounder credits this focus for ~$10M ARR; no split by segment
- Auto-invite users to 15-minute calls booked with whoever on the team is freeEvery employee, engineers included, does 2+ user calls a week
- Have engineers demo unreleased features to power users on weekly callsFounder says it validates complex features before shipping; no numbers
- Ask unhappy users three questions by email they can answer by replyingOffsets the happy-user bias in interviews; no numbers
- Build a free web tool that guesses where you're from after 10 seconds of speech~100K people in Korea tried it the day after one investor posted it
- Add city-level results to the free accent tool to spark a new viral waveProduced another viral boost; no numbers
- Show a sample of the full in-app results to push web users to the appFounder says it boosts web-to-app conversion; no numbers
- Ride a TikTok trend of people crying over their low app scoresOne creator got ~300M views in a few months, no ads; lower intent than paid
- Grow from accent training into overall spoken-English fluency after raising a Series A
- Hire self-driven founder types and hold just one team meeting a week, on Mondays~$10M ARR with 10 people; founder credits hiring first
- Get everyone, even the non-technical CEO, shipping code with ClaudeRoughly doubled team productivity, per the founder; her biggest win of the year
- Recruit a Hollywood accent coach and run a manual email pilot with 12 usersLed to a ~$500K term sheet and YC; the coach still works with them
- Show a countdown of free scans left before the paywall appears
Tags: discount, exit-offer, refunds, ab-test